ONEOK, Inc. announced plans to expand its Canadian Valley natural gas processing facility in the STACK play of western Oklahoma to 400 million cubic feet per day (MMcf/d) from 200 MMcf/d to support increasing production growth.
The Canadian Valley II project in Canadian County, Oklahoma, is anticipated to be completed by the end of 2018. The expansion and related infrastructure is expected to cost approximately $155 million to $165 million and is supported by more than 200,000 acres of dedication, primarily fee-based contracts and minimum volume commitments.
“The doubling of processing capacity at Canadian Valley is needed to capture rapidly increasing customer production in the STACK play,” said Terry K. Spencer, ONEOK president and chief executive officer. “The expansion will provide producers in the area with essential natural gas processing capacity.”
The expansion of Canadian Valley, in conjunction with the recently announced 200 MMcf/d firm offload agreement to a third-party processor, will bring ONEOK’s total natural gas processing capacity in Oklahoma to approximately 1.1 billion cubic feet per day (Bcf/d) by 2019.
Additionally, NGLs produced from the expansion are expected to add approximately 20,000 barrels per day of additional volumes to ONEOK’s existing Oklahoma NGL gathering system.